SAN FRANCISCO - Allbirds, Inc. (NASDAQ: BIRD), the eco-conscious lifestyle brand known for its sustainable footwear, has declared a 1-for-20 reverse stock split of its shares, a strategic move approved by its Board of Directors and shareholders. The action aims to comply with Nasdaq's minimum bid price condition for continued listing on the Nasdaq Global Select Market.
The reverse stock split, approved by stockholders on August 13, 2024, is scheduled to take effect after the market closes on Tuesday, September 4, 2024. Trading on a post-split basis will commence the following day, Wednesday, September 5, 2024, under the existing ticker symbol "BIRD" and a new CUSIP number 01675A208.
This consolidation will convert every 20 shares of issued and outstanding Allbirds Common Stock into a single share. Consequently, the number of shares held by each stockholder will be reduced accordingly, yet their proportional ownership in the company will remain unchanged, barring adjustments for fractional shares. Stockholders will not receive fractional shares; instead, they will be compensated in cash for any fractional ownership.
The adjustment will also extend to all outstanding equity awards, which will be proportionally adapted to reflect the reverse stock split. Computershare Inc. has been appointed as the exchange and transfer agent to facilitate the process. Shareholders utilizing electronic book-entry form need not take any action to obtain post-split shares. Those with shares held through banks, brokers, or nominees will see their holdings automatically adjusted and will be compensated for fractional shares based on their financial institution's procedures.
Further details on the reverse stock split are available in Allbirds's definitive proxy statement filed with the U.S. Securities and Exchange Commission on June 28, 2024.
Founded in 2016 and based in San Francisco with New Zealand origins, Allbirds has gained prominence for its Wool Runner shoes and commitment to sustainable materials like SweetFoam™ and textiles derived from eucalyptus fibers and Merino wool. The brand emphasizes that quality and environmental responsibility can coexist without compromise.
This news is based on a press release statement and provides investors with the latest developments regarding Allbirds's compliance strategies with market listing standards.
In other recent news, Allbirds Inc. announced the appointment of Ravi Thanawala, the current CFO of Papa John’s International, to its Board of Directors. Thanawala's wealth of experience from his tenure in the retail and restaurant industries is expected to enhance Allbirds' strategic initiatives and shareholder value. He will be replacing Mandy Fields, who has been commended for her contributions to the company's growth. In earnings news, Allbirds revealed its Q1 2024 results, noting an improvement in gross margin and a reduction in adjusted EBITDA loss, despite a 28% drop in sales year-over-year. The company also projects its full-year revenue to be between $190 million and $210 million. In governance updates, the company's Annual Meeting of Stockholders saw the election of three Class III directors and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the year ending December 31, 2024. These recent developments underscore Allbirds' proactive approach to navigating challenges in the retail industry, with strategic shifts, cost discipline, and a focus on product and brand appeal.
InvestingPro Insights
Allbirds, Inc. (NASDAQ: BIRD) is navigating through a challenging period as it undertakes a 1-for-20 reverse stock split to maintain its Nasdaq listing. InvestingPro data reveals a market capitalization of 113 million USD, reflecting the market's current valuation of the company. Despite a difficult market environment, Allbirds shows resilience with a gross profit margin of 43.96% over the last twelve months as of Q2 2024, indicating its ability to retain a significant portion of revenue after accounting for the cost of goods sold.
However, Allbirds faces headwinds as evidenced by a revenue decline of 21.84% over the same period. The company's stock has experienced significant volatility, with a 1-week price total return of -16.7%, yet it has seen a strong return over the last month at 17.44%. This volatility is a point of caution for investors, as highlighted by InvestingPro Tips, which note the stock's high price volatility and the anticipation of a sales decline in the current year. Moreover, Allbirds holds more cash than debt, which could provide some financial flexibility in the short term, despite analysts' concerns about the company's cash burn and profitability prospects.
Investors seeking a more comprehensive analysis can find additional insights on Allbirds, including 15 InvestingPro Tips, which offer a detailed perspective on the company's financial health and market performance. These tips are accessible through InvestingPro's platform at https://www.investing.com/pro/BIRD, and can guide investors in making informed decisions about the company's future in light of the reverse stock split and market conditions.
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